Barron’s Predictions and other weekend notes September 8 2012

Favorable recaps of FDX, TSO, INTC, Housing Stocks (in three different articles), PFE, WYNN.  Tesoro has had such a run from the mid teens to over 40 that I feel for such a cyclical stock the gains may already have been had — Barron’s said another 40% gain could be on tap.  PFE & INTC got the usual treatment of being appealing for p/es around 10 and dividend yields near 4%.

Here Come Super Options by Steven Sears was the only noteworthy article, describing the attempts of the CBOE to get approval for 10-15 year exchange traded options to match specialized markets made for insurance companies.   The article did not note SPX “super options” of up to 5 years are already available, notably with European exercise rules so as to not be manipulable to large dividends.  Volume and open interest look very light however.

SunTrust STI has been covered numerous places (Forbes) about selling the remaining stake in Coca Cola (KO, $38) after a 2,000,000% return from 1919.  This historical anomaly was something that first fascinated me when I started looking at stocks in the mid 90s.  STI looks a touch ahead of itself but could be a beneficiary of the ongoing housing revival.  I think there are probably better buys out there.

Chart forSunTrust Banks, Inc. (STI)

Hogs Wallow Near Two Year Low in the WSJ was also of note for future commodities plays;

Slaughter-ready hogs have been streaming into meatpacking plants since July. Their shipments have included thousands of sows, or mature females, that farmers normally would keep for breeding litters of piglets. The move eventually will tighten pork supplies. Meanwhile, many farmers are only willing to feed expensive food rations to their most-productive sows.


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